23rd Mar 2016 08:50
LONDON (Alliance News) - Laura Ashley Holdings PLC on Wednesday reported lower profit in its recently-ended financial year as its booked an exceptional charge and suffered a decline in revenue.
The home furnishings and fashion retailer's pretax profit in the year ended January 30 fell to GBP19.4 million from GBP23.5 million the year before, as revenue declined to GBP289.5 million from GBP303.6 million.
Laura Ashley said sales in the prior year benefited from a 53rd week, compared with last year's 52-week period, although sales were hit anyway from continued challenging trading conditions in the international business, particularly in Japan.
Franchise and licensing revenue in the international business decreased by 28% due to a rise in local sales tax in Japan, a weak Japanese yen, and a subdued domestic economy, Laura Ashley said, leading to weak demand.
In the UK, total sales declined by 2.0% due to a reduction in store numbers and the impact of not having the 53rd week. By division, furniture sales increased by 2.8% and home accessories sales were up by 5.6%, but decorating sales were down by 1.1% while sales in fashion decreased by 4.0%.
Like-for-like retail sales grew by 4.8%, while total online revenue rose by 5.3%.
Laura Ashley added that profit also took a knock from a GBP1.3 million exceptional charge relating to its licence partner in Australia being placed into voluntary administration.
Laura Ashley will pay a final dividend of 1.00 pence per share, which is flat year-on-year.
In the seven weeks to March 20, like-for-like sales are down by 0.4%.
"We remain optimistic for the future and are confident that the strength of the brand and the enduring appeal of our product ranges mean we are well positioned for continued growth," Chairman Tan Sri Dr Khoo Kay Peng said in a statement.
Shares in Laura Ashley were trading down 1.8% at 23.82 pence on Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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